What To Do When You Receive Bad Quality Product From China
1. What should I do if a Chinese company sends me products whose quality is less than what was agreed upon?
According to professional experience, you will need to consider the following:
(1) The size of the claim and other relevant factors;
(2) Your relationship with the Chinese company;
(3) Whether a quality inspection report was included with the shipment;
(4) Whether the Chinese company is a legally registered entity;
(5) The specific nature of the defect or quality flaw;
(6) Whether a written contract was concluded that outlines quality specs;
(7) What dispute resolution method is identified in the contract;
For best results, remember to require your Chinese supplier to supply a Quality Inspection Report with its shipments and agree to the terms of quality in a contract before funds are transferred for product purchase.
2. If you are considering litigation and a written contract has not identified arbitration as the dispute settlement method, you will need to consider the following?
(1) The sales contract which outlines the quality specs acceptable;
(2) The payment stubs which show payment for the item identified in the sales contract;
(3) The name of the company which receives the payment and the name of the seller in the sales contract should be the same or evidence that shows the relationship between the relevant parties;
(4) The physical and financial assets of the supplier which would be used for compensation in the case that damages are awarded;
(5) The assets identified are located in the same jurisdiction as the company registration of the supplier;
3. Who can act as the agent to represent you in a Chinese court?
Lehman, Lee & Xu is a full service PRC law firm that can represent both Chinese and foreign parties in Chinese courts.
Foreign lawyers and foreign law firms can not act as an agent in Chinese courts.
4. How to choose the Quality checkup Organ?
A Quality Inspection Report made by a duly registered Quality identification Organization can be accepted by a Chinese Court, regardless of whether it is located in or out of China, for example, SGS.
5. Besides litigation is there other way to settle this quality problem?
We suggest that sales contracts identify arbitration as the dispute resolution method. We would be happy to review your sales contracts and add an arbitration clause which will allow quick, simple, and economical resolution to quality control problems from Chinese suppliers. If a contract was not signed, check to see if arbitration was duly mentioned in other documents, such as e-mails between the two parties.
In the case of litigation, a POA and many company documents shall be legalized in the buyer’s own country, as well as all documents that will be used as evidence. It will take time and money.